EXHIBIT 99
[PHARMACIA LOGO]
FOR IMMEDIATE RELEASE
PHARMACIA REPORTS 57% INCREASE IN THIRD QUARTER
EARNINGS PER SHARE
o PHARMACEUTICAL SALES GROW 20% TO $3.3 BILLION, LED BY 23% INCREASE IN
PRESCRIPTION SALES
- CELEBREX POSTS SALES OF $687 MILLION
- XALATAN RECORDS 36% INCREASE IN SALES TO $185 MILLION
- CAMPTOSAR SALES INCREASE 65% TO $134 MILLION
o MARKET SHARE GAINS AND PHARMACIA'S RISE INTO INDUSTRY TOP 10 RANKING
CONFIRM PROGRESS OF MERGER
o AGRICULTURAL SALES INCREASE 2% IN THIRD QUARTER, 5% YEAR TO DATE
o MERGER INTEGRATION PROCESS ON TRACK; MERGER COST SAVINGS AHEAD OF SCHEDULE
OTHER DEVELOPMENTS
------------------
o NEW DRUG APPLICATION SUBMITTED TO U.S. FOOD AND DRUG ADMINISTRATION FOR NEW
INJECTABLE COX-2-SPECIFIC INHIBITOR, PARECOXIB, FOR PAIN MANAGEMENT
o LONG-TERM CELEBREX SAFETY DATA FROM LANDMARK 8,000 PATIENT STUDY PUBLISHED
IN JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION (JAMA)
o PARTIAL INITIAL PUBLIC OFFERING (IPO) OF MONSANTO AGRICULTURAL SUBSIDIARY
PROGRESSES; TRADING IN MONSANTO SHARES INITIATED ON OCTOBER 18, 2000
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
Financial summary THIRD QUARTER Third Quarter % chg NINE MONTHS Nine Months % chg
($ millions except 2000 1999 2000 1999
per share amounts)
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PHARMACEUTICAL SALES $3,283 $2,734 20% $ 9,309 $ 8,008 16%
(continuing business)
--------------------------------------------------------------------------------------------------------------
AGRICULTURAL SALES $1,003 $ 980 2% $ 4,293 $ 4,087 5%
(continuing business)
--------------------------------------------------------------------------------------------------------------
TOTAL SALES $4,286 $3,714 15% $13,602 $12,095 12%
(continuing business)
--------------------------------------------------------------------------------------------------------------
EARNINGS FROM CONTINUING OPERATIONS $ 427 $ 265 61% $ 1,474 $ 1,115 32%
(as adjusted - see Consolidated
Statement of Earnings)
--------------------------------------------------------------------------------------------------------------
DILUTED NET EARNINGS PER SHARE $ 0.19 $ 0.18 6% $ 0.55 $ 0.85 (35%)
(as reported)
--------------------------------------------------------------------------------------------------------------
DILUTED NET EARNINGS PER SHARE $ 0.33 $ 0.21 57% $ 1.13 $ 0.87 30%
(as adjusted - see Consolidated
Statement of Earnings)
--------------------------------------------------------------------------------------------------------------
<FN>
Year-to-year growth rates are affected by certain items that affect comparability.
See discussion in Results of Operations section.
</FN>
</TABLE>
(more)
<PAGE>
2
PEAPACK, N.J. (OCTOBER 30, 2000) -- Pharmacia Corporation (NYSE: PHA) today
reported sales and earnings for the third quarter of 2000. Financial results for
the third quarter ended September 30, 2000 are as follows:
SALES
Pharmacia recorded net sales of $4.3 billion, an increase of 15% over the third
quarter of 1999. Net sales for the company's pharmaceutical business were $3.3
billion, a 20% increase over the third quarter of 1999 while agricultural sales
were $1.0 billion, a 2% increase. For the first nine months of 2000,
pharmaceutical sales increased 16% to $9.3 billion, and agricultural sales
increased 5% to $4.3 billion.
Sales of prescription pharmaceutical products increased 23% in the third quarter
and 19% in the first nine months of the year. Excluding the unfavorable effects
of exchange, sales of prescription pharmaceutical products increased 27% and 22%
in the third quarter and year to date as compared to last year.
EARNINGS
On an adjusted basis, Pharmacia reported earnings of $427 million, a 61%
increase over the third quarter of 1999. For the first nine months, net earnings
were $1.5 billion (+32%). Adjusted earnings per share were 33 cents in the
quarter (+57%) and $1.13 in the first nine months (+30%). Reported results for
the third quarter include $226 million ($154 million after tax or 12 cents per
share) in merger and restructuring costs (see Consolidated Statement of Earnings
on page 7 for additional details).
Commenting on the company's results, Pharmacia Chief Executive Officer Fred
Hassan said: "Our outstanding results for the third quarter and year to date
confirm the growth strategy of our merger. Pharmacia has emerged as one of the
top growth companies in the pharmaceutical industry. We see no other company
among our peers that can beat our combination of strong product pipeline, patent
protection and long-term growth."
In response to new accounting guidance for revenue recognition and Pharmacia's
decision to retain exclusive marketing rights to its recently-filed COX-2
compound, parecoxib, the company has made adjustments to its outlook and now
expects full year EPS to grow approximately 30% in 2000. In 2001, the company
expects EPS to grow 20-25%, including the dilutive impact of the recent partial
Initial Public Offering (IPO) of the Monsanto agricultural business. These
growth projections exclude the impact of merger and restructuring charges and
other special items.
<TABLE>
<CAPTION>
PERFORMANCE OF PHARMACEUTICAL BUSINESSES
-----------------------------------------------------------------------------------------------------------
US $(millions) Third Quarter 2000 Q3 % Change September 2000 YTD YTD % Change
-----------------------------------------------------------------------------------------------------------
Total Pharmaceutical Sales $3,283 20% $9,309 16%
(continuing business)
===========================================================================================================
KEY RX PRODUCTS
<S> <C> <C> <C> <C>
Celebrex $687 77% $1,842 89%
Ambien $233 81% $ 498 47%
Xalatan $185 36% $ 497 43%
Genotropin $104 (4%) $ 345 6%
Camptosar $134 65% $ 325 55%
Detrol $125 45% $ 319 35%
-----------------------------------------------------------------------------------------------------------
</TABLE>
(more)
<PAGE>
3
Pharmaceutical sales growth in the third quarter was driven by a 34% increase in
U.S. sales. For the first nine months of 2000, pharmaceutical sales increased
25% in the U.S. The company expects this sales growth to moderate in future
quarters to reflect higher Celebrex comparisons as well as inventory
adjustments. In Japan, Pharmacia's second largest market, pharmaceutical sales
increased 12% for the quarter based on the growth of products introduced during
1999 and a positive currency effect. Strong sales growth in Europe was offset in
part by a negative currency impact.
Since the completion of its merger at the end of March, the new Pharmacia has
improved both its ranking in the global pharmaceutical industry and its market
share in the pivotal U.S. market. Pharmacia now ranks tenth in the global
pharmaceutical industry based on sales volume and has increased its U.S.
prescription market share from 3.8% to 4.1%.
Celebrex, the number-one selling prescription arthritis medication worldwide,
had sales of $687 million in the quarter and $1.8 billion in the first nine
months. In the U.S., sales for the quarter were $584 million with a slightly
positive impact from anticipatory purchasing at the trade level. During the
third quarter, the European rollout of Celebrex continued with launches in Italy
and Spain.
Xalatan, the world's top selling branded glaucoma medication, continued to grow
in all major markets. Sales were $185 million in the third quarter, an increase
of 36% over prior year sales. Sales of Xalatan for the first nine months of the
year increased 43% to $497 million. Xalatan continues to expand its market
leadership position in the U.S. and other major markets.
Sales of Camptosar were $134 million in the third quarter, a 65% increase over
the third quarter of 1999. Sales in the U.S. were positively influenced by
inventory purchasing due to a price increase in August. For the first nine
months, sales of Camptosar increased 55% to $325 million. A Camptosar-containing
regimen is the leading therapy and represents the standard of care for patients
with metastatic colorectal cancer based on its survival benefit. Camptosar is
being used earlier in the course of treating patients with metastatic colorectal
cancer as a result of FDA approval in April as a component of first-line
treatment and the recent publication of the first-line study results in the New
England Journal of Medicine.
Detrol/Detrusitol, the leading therapy for overactive bladder, recorded sales of
$125 million in the third quarter and $319 million for the nine-month period, a
35% increase. U.S. prescriptions for Detrol continue to grow faster than the
market.
Genotropin, the world's leading growth hormone, recorded sales of $104 million
during the third quarter and $345 million for the first nine months. Sales in
the third quarter decreased 4% as a result of an inventory adjustment at the
wholesale level for sales recorded during the first half of the year. As a
result, third quarter sales do not reflect true market trends. Demand continues
to be strong for Genotropin worldwide though results in the third quarter were
negatively impacted by foreign exchange.
Zyvox, launched in the U.S. in April for the treatment of severe Gram-positive
infections, recorded sales of $11 million in the quarter. By the end of the
quarter, Zyvox had been granted formulary approval by more than 1,000 target
medical institutions in the U.S.
Sales of Ambien, the leading brand for insomnia in the U.S., increased 81% to
$233 million in the third quarter. Wholesale inventory levels at the end of the
third quarter are slightly higher than normal due to purchasing prior to a
September price increase. For the first nine months, sales increased 47% to $498
million reflecting broad acceptance of the product profile of Ambien.
(more)
<PAGE>
4
PERFORMANCE OF AGRICULTURAL BUSINESSES
Sales for Monsanto Company, the agricultural subsidiary of Pharmacia, rose 2% in
the third quarter, a traditionally slow quarter as it falls after the main
northern hemisphere selling season. The company had a net loss of $45 million in
the quarter, excluding special charges. This represents an improvement of $38
million over the same period in 1999. The company's continuing focus on cost
management reduced SG&A and R&D spending by $63 million, or 12% in the third
quarter.
RESULTS OF OPERATIONS
The company's gross margin, as adjusted, in the third quarter was 70%, a 3
percentage point improvement, as compared to prior year, due mainly to
pharmaceutical product mix.
Selling, General & Administrative (SG&A) expenses decreased 1 percentage point
to 37% of sales in the third quarter. Research & Development expenses were $669
million in the quarter, a small decrease reflecting the impact of spending
reductions in the Monsanto agricultural business.
All other net moved from income of $65 million in third quarter of 1999 to a net
expense of $18 million in the current year. This change was primarily
attributable to the Ambien collaboration and gains on divestitures recorded in
1999.
The company's overall estimated annual effective tax rate for 2000 is 30%
excluding merger and restructuring and certain other items.
The company recorded aggregate merger and restructuring charges of $226 million
for the quarter and $914 million for the first nine months of the year. As
previously stated, the company estimates total merger and restructuring costs
will approximate $2.0 to $2.5 billion over the next three years.
OTHER DEVELOPMENTS
During the quarter, results of a landmark long-term study of 8,000 patients with
osteoarthritis (OA) and adult rheumatoid arthritis were published in the Journal
of the American Medical Association (JAMA). The study found that patients
treated with Celebrex experienced two-to-threefold fewer gastrointestinal
complications than patients treated with two other arthritis medications
studied, even at four times the recommended OA dose of Celebrex. Celebrex showed
a positive renal and hepatic profile with no increase in thromboembolic or other
cardiovascular-related events. A supplemental New Drug Application (sNDA) based
on this data is currently under review by the U.S. FDA.
In addition, the company has submitted a New Drug Application to the FDA for
parecoxib sodium, the first investigational injectable COX-2 specific analgesic
agent.
Earlier this month the FDA approved Lunelle, the first monthly contraceptive
injection. Lunelle will be available in pharmacies by the end of the year.
Pharmacia also moved ahead with its planned partial Initial Public Offering
(IPO) of the Monsanto agricultural business. Shares in Monsanto (NYSE: MON)
began trading on the New York Stock Exchange on October 18. Following the IPO,
Pharmacia retains approximately 85% ownership of Monsanto.
(more)
<PAGE>
5
Pharmacia Corporation (NYSE: PHA) is a leading global pharmaceutical company
created through the merger of Pharmacia & Upjohn with Monsanto Company and its
G.D. Searle unit. Pharmacia has a broad product portfolio, a robust pipeline of
new medicines, and an annual investment of more than $2 billion in
pharmaceutical research and development. In its Monsanto subsidiary, Pharmacia
has one of the world's leading fully integrated agricultural businesses.
Certain statements contained in this release, such as statements concerning the
Company's anticipated financial results, current and new product performance,
regulatory approvals, currency impact and other non-historical facts are
"forward-looking statements" (as such term is defined in the Private Securities
Litigation Reform Act of 1995). Since these statements are based on factors that
involve risks and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. The Company does not
assume any obligation to update any forward looking statements. Such factors
include, among others: management's ability to implement strategic and
restructuring initiatives; the Company's ability to successfully market new and
existing products in new and existing domestic and international markets; the
success of the Company's research and development activities and the speed with
which regulatory authorizations and product roll-outs may be achieved;
fluctuations in exchange rates; the effects of the Company's accounting policies
and general changes in generally accepted accounting principles; the Company's
exposure to product liability and other lawsuits and contingencies related to
actual or alleged environmental contamination; domestic and foreign social,
legal and political developments, especially those relating to health care
reform, product liabilities, and agriculture products developed through
biotechnology; increased generic and branded competition for the Company's
Roundup herbicide as a result of the expiration of U.S. patent protection in
September 2000; the seasonal nature of the Company's agriculture business;
general economic and business conditions; the Company's ability to attract and
retain current management and other employees of the Company; and other risks
and factors detailed in the Company's Securities and Exchange Commission
filings, including its Form 10-K for the year ended December 31, 1999.
MEDIA CONTACTS: ANALYST CONTACTS:
--------------- -----------------
CORPORATE AND PHARMACEUTICAL CORPORATE AND PHARMACEUTICAL
PAUL FITZHENRY CRAIG TOOMAN
(908) 901-8770 (908) 901-8853
AGRICULTURAL AGRICULTURAL
SCARLETT FOSTER ANDY KUCHAN
(314) 694-2883 (314) 694-7867
(end)
<PAGE>
6
<TABLE>
<CAPTION>
2000 GEOGRAPHIC PHARMACEUTICAL SALES (US$ in millions, unaudited)
THIRD QUARTER (CONTINUING BUSINESSES)
---------------------------------------------------------------------------------------------------------------
Third % % Chg September YTD % % Chg
Quarter 2000 Chg Excl.Curr. 2000 Chg Excl.Curr.
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
United States $1,911 34% 34% $5,105 25% 25%
Japan $ 226 12% 6% $ 687 21% 11%
Italy $ 117 1% 16% $ 398 0% 14%
Germany $ 111 0% 14% $ 329 (5%) 8%
United Kingdom $ 99 (8%) (1%) $ 321 (2%) 3%
France $ 85 (11%) 1% $ 262 (11%) 1%
Rest of World $ 734 9% 18% $2,207 11% 17%
===============================================================================================================
Net Sales $3,283 20% 24% $9,309 16% 19%
---------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
2000 SALES BY BUSINESS (US$ IN MILLIONS)
THIRD QUARTER
-----------------------------------------------------------------------------------------------------------------------------------
Third Quarter Third Quarter % Change September September % Change
2000 1999 Net Sales YTD 2000 YTD 1999 Net Sales
----------------------------------------------------------------------------------------------------------
US TOTAL US TOTAL US TOTAL US TOTAL US TOTAL US TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Pharma including 1,911 3,283 1,429 2,755 34% 19% 5,105 9,315 4,086 8,078 25% 15%
divested business
Less divested business -- -- -- 21 N/A N/A -- 6 -- 70 N/A N/A
===================================================================================================================================
TOTAL PHARMA (continuing 1,911 3,283 1,429 2,734 34% 20% 5,105 9,309 4,086 8,008 25% 16%
business)
===================================================================================================================================
Agricultural 338 1,003 364 983 (7%) 2% 2,467 4,293 2,361 4,119 5% 4%
-----------------------------------------------------------------------------------------------------------------------------------
Less divested businesses -- -- 2 3 N/A N/A -- -- 31 32 N/A N/A
===================================================================================================================================
TOTAL AG 338 1,003 362 980 (7%) 2% 2,467 4,293 2,330 4,087 6% 5%
(continuing business)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
7
<TABLE>
<CAPTION>
PHARMACIA CORPORATION CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED) - FOR THE
QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2000 ($S IN MILLIONS, EXCEPT DILUTED
PER-SHARE DATA):
--------------------------------------------------------------------------------------------------------------------
Third Third % YTD YTD %
Quarter Quarter Change 2000 1999 Change
2000 1999
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET SALES $ 4,286 $ 3,738 15% $ 13,608 $ 12,197 12%
Cost of Product Sold(1) 1,295 1,244 4% 4,210 3,978 6%
Research & Development(2) 669 732 (9%) 2,090 2,121 (1%)
Selling, General & Administrative(3) 1,602 1,438 11% 4,958 4,196 18%
Amortization and Adjustment of Goodwill(4) 57 55 4% 259 183 42%
All other, net 18 (65) N/A (13) (106) N/A
Merger & Restructuring(5) 226 42 N/A 798 42 N/A
-------------------------------------------------------------------
EARNINGS BEFORE INTEREST AND TAXES (EBIT) 419 292 43% 1,306 1,783 (27%)
Interest expense, net 68 68 -- 215 239 (10%)
-------------------------------------------------------------------
EARNINGS BEFORE INCOME TAXES 351 224 57% 1,091 1,544 (29%)
Provision for income taxes 78 29 NA 340 499 (32%)
-------------------------------------------------------------------
EARNINGS FROM CONTINUING OPERATIONS 273 195 40% 751 1,045 (28%)
Earnings from discontinued operations, 0 27 N/A 0 57 N/A
net of taxes
Gain (loss) on sale of discontinued (26) 12 N/A (27) 12 N/A
operations, Net of taxes
-------------------------------------------------------------------
Earnings before cumulative effect of 247 234 6% 724 1,114 (35%)
Accounting change
-------------------------------------------------------------------
Cumulative effect of a change in accounting -- -- -- -- (20) N/A
Net of income tax benefit
-------------------------------------------------------------------
NET EARNINGS 247 234 6% 724 1,094 (34%)
===================================================================
Earnings per common share:
Diluted - Earnings from continuing operations $ 0.21 $ 0.15 40% $ 0.57 $ 0.81 (30%)
--------------------------------------------------------------------------------------------------------------------
DILUTED - NET EARNINGS(6) 0.19 0.18 6% 0.55 0.85 (35%)
--------------------------------------------------------------------------------------------------------------------
<FN>
----------
(1) Third quarter 1999 includes $20 ($13 net of tax or 1 cent per share) relating to Ag's accelerated integration of
the agricultural chemical and seed operations. Second quarter 2000 includes $32 ($20 net of tax or 2 cents per
share) primarily relating to the write-off of inventory in the Ag restructuring.
(2) Third quarter 1999 includes $29 ($26 net of tax or 2 cents per share) reflecting write-offs associated with the
termination of existing projects as a result of the merger with SUGEN and the Sensus acquisition.
(3) First quarter 2000 includes $100 ($62 net of tax or 5 cents per share) charitable contribution.
(4) Third quarter 1999 includes $8 ($5 net of tax or 1 cent per share) relating to Ag's accelerated integration of
the agricultural chemical and seed operations. Second quarter 2000 includes $84 ($83 net of tax or 7 cents per
share) relating to the write-down of goodwill in the Ag restructuring.
(5) Third quarter 2000 charges are $226 ($154 net of tax or 12 cents per share) and $798 ($558 net of tax or 42
cents per share) year to date 2000. "Merger & Restructuring" charges are $42 ($26 net of tax or 2 cents per share)
for the third quarter and year to date 1999.
(6) Diluted net earnings per share include the amounts cited above plus discontinued operations and the 1999
accounting change as follows:
---------------------------------------------------------------------------
3Q 2000 3Q 1999 YTD 2000 YTD 1999
---------------------------------------------------------------------------
Aggregate merger & restructuring .12 .06 .51 .06
---------------------------------------------------------------------------
Charitable contribution .05
---------------------------------------------------------------------------
Discontinued operations .02 (.03) .02 (.06)
---------------------------------------------------------------------------
Accounting change .02
---------------------------------------------------------------------------
</FN>
</TABLE>
<PAGE>
8
<TABLE>
<CAPTION>
PHARMACIA CORPORATION AGRICULTURAL OPERATIONS (UNAUDITED) - FOR THE
QUARTER ENDED SEPTEMBER 30, 2000 AND 1999 ($ IN MILLIONS):
-------------------------------------------------------------------------------------------------------
Third Third % Sept. Sept. %
Quarter Quarter Change YTD YTD Change
2000 1999 2000 1999
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET AG SALES $ 1,003 $ 983 2% $4,293 $4,119 4%
Cost of Product Sold(1) 549 557 (1%) 2,035 1,940 5%
Research & Development 140 179 (22%) 431 517 (17%)
Selling, General & Administrative 300 324 (7%) 988 926 7%
Amortization and Adjustment of Goodwill(2) 29 25 20% 178 91 96%
All other, net 7 4 N/A 35 34 N/A
Merger & Restructuring 26 39 N/A 67 39 N/A
-------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST AND TAXES (EBIT) (48) (145) 67% 559 572 (2%)
Interest expense, net 59 53 11% 187 189 (1%)
-------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INCOME TAXES (107) (198) 46% 372 383 (3%)
PROVISION FOR INCOME TAXES (41) (71) 42% 169 141 20%
-------------------------------------------------------------------------------------------------------
NET EARNINGS $ (66) $(127) 48% $ 203 $ 242 (16%)
-------------------------------------------------------------------------------------------------------
</TABLE>
Depreciation and amortization are $135 for 3Q00 and $410 for nine months ended
September 30, 2000 (excludes $84 goodwill write-off in 2Q00 restructuring).
--------------------------------------------------------------------------------
(1) Third quarter 1999 includes $20 ($13 net of tax or 1 cent per share)
relating to Ag's accelerated integration of the agricultural chemical and seed
operations. Second quarter 2000 includes $32 ($20 net of tax or 2 cents per
share) primarily relating to the write-off of inventory in the Ag restructuring.
(2) Third quarter 1999 includes $8 ($5 net of tax or 1 cent per share) relating
to Ag's accelerated integration of the agricultural chemical and seed
operations. Second quarter 2000 includes $84 ($83 net of tax or 7 cents per
share) relating to the write-down of goodwill in the Ag restructuring.
<PAGE>
9
<TABLE>
<CAPTION>
PHARMACIA CORPORATION OPERATIONS EXCLUDING AGRICULTURAL (UNAUDITED) - FOR
THE QUARTER ENDED SEPTEMBER 30, 2000 AND 1999 ($ IN MILLIONS):
----------------------------------------------------------------------------------------------------------
Third Third % Sept. Sept. %
Quarter Quarter Change YTD YTD Change
2000 1999 2000 1999
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET PHARMACEUTICAL SALES $3,283 $ 2,755 19% $ 9,315 $ 8,078 15%
Cost of Product Sold 746 687 9% 2,175 2,038 7%
Research & Development(1) 529 553 (4%) 1,659 1,604 3%
Selling, General & Administrative(2) 1,302 1,114 17% 3,970 3,270 21%
Amortization and Adjustment of Goodwill 28 30 (7%) 81 92 (12%)
All other, net 11 (69) N/A (48) (140) N/A
Merger & Restructuring 200 3 N/A 731 3 N/A
----------------------------------------------------------------
EARNINGS BEFORE INTEREST AND TAXES (EBIT) 467 437 7% 747 1,211 (38%)
Interest expense, net 9 15 (40%) 28 50 (44%)
----------------------------------------------------------------
EARNINGS BEFORE INCOME TAXES 458 422 9% 719 1,161 (38%)
Provision for Income Taxes 119 100 19% 171 358 (52%)
----------------------------------------------------------------
EARNINGS FROM CONTINUING OPERATIONS $ 339 $ 322 5% $ 548 $ 803 (32%)
---
----------------------------------------------------------------------------------------------------------
</TABLE>
Note: Financial data presented here are intended to reflect the results of
operations of the pharmaceutical businesses combined with corporate costs and
expenses. This presentation is not purported to be financial statements prepared
in accordance with GAAP.
Depreciation and amortization are $163 for 3Q00 and $479 for nine months ended
September 30, 2000.
----------
(1) Third quarter 1999 includes $29 ($26 net of tax or 2 cents per share)
reflecting write-offs associated with the termination of existing projects as a
result of the merger with SUGEN and the Sensus acquisition.
(2) First quarter 2000 includes $100 ($62 net of tax or 5 cents per share)
charitable contribution.
<PAGE>
x----------------x
| Supplement | [PHARMACIA LOGO]
| |
x----------------x
<TABLE>
<CAPTION>
2000 KEY PHARMACEUTICAL PRODUCT SALES (US$ IN MILLIONS)
THIRD QUARTER
------------------------------------------------------------------------------------------------------------------------------------
Third Quarter Third Quarter Third Quarter September September First 9 months
2000 1999 % Change YTD 2000 YTD 1999 % Change
----------------------------------------------------------------------------------------------------------
US TOTAL US TOTAL US TOTAL US TOTAL US TOTAL US TOTAL
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Celebrex $584 $687 $353 $389 65% 77% $1,605 $1,842 $909 $974 77% 89%
Ambien $231 $233 $128 $129 80% 81% $ 494 $ 498 $336 $339 47% 47%
Xalatan $ 97 $185 $ 75 $136 29% 36% $ 245 $ 497 $197 $348 24% 43%
Genotropin $ 6 $104 $ 14 $108 (57%) (4%) $ 49 $ 345 $ 37 $326 32% 6%
Camptosar $123 $134 $ 75 $ 81 64% 65% $ 299 $ 325 $195 $210 53% 55%
Detrol/ Detrusitol $ 98 $125 $ 67 $ 86 46% 45% $ 240 $ 319 $186 $236 29% 35%
Cleocin/ Dalacin $ 35 $ 79 $ 38 $ 85 (8%) (7%) $ 114 $ 254 $107 $253 7% 0%
Xanax $ 29 $ 82 $ 31 $ 87 (6%) (6%) $ 83 $ 247 $ 85 $248 (2%) 0%
Medrol $ 21 $ 64 $ 25 $ 73 (16%) (12%) $ 62 $ 208 $ 68 $220 (9%) (5%)
Arthrotec $ 48 $ 79 $ 44 $ 82 9% (4%) $ 112 $ 207 $156 $265 (28%) (22%)
Depo-Provera $ 44 $ 63 $ 45 $ 63 (2%) 0% $ 139 $ 188 $141 $188 (1%) 0%
Nicorette line $ 21 $ 50 $ 20 $ 50 5% 0% $ 63 $ 159 $ 79 $173 (20%) (8%)
Fragmin $ 8 $ 44 $ 6 $ 51 33% (14%) $ 25 $ 158 $ 16 $153 56% 3%
Pharmorubicin/ Ellence $ 3 $ 53 $ -- $ 47 N/A 13% $ 5 $ 152 $ -- $146 N/A 4%
Aldactone/ Spiro Line $ 10 $ 49 $ 12 $ 55 (17%) (11%) $ 23 $ 145 $ 36 $162 (36%) (10%)
Covera/ Calan/Verapamil $ 49 $ 55 $ 36 $ 40 36% 38% $ 122 $ 135 $113 $126 8% 7%
Daypro $ 43 $ 43 $ 52 $ 53 (17%) (19%) $ 115 $ 116 $179 $182 (36%) (36%)
Rogaine $ 24 $ 32 $ 32 $ 39 (25%) (18%) $ 76 $ 100 $ 79 $101 (4%) (1%)
Healon $ 7 $ 29 $ 7 $ 30 0% (3%) $ 22 $ 93 $ 24 $ 98 (8%) (5%)
Cabaser/ Dostinex $ 8 $ 29 $ 9 $ 23 (11%) 26% $ 26 $ 85 $ 23 $ 59 13% 44%
Mirapex $ 10 $ 17 $ 13 $ 16 (23%) 6% $ 60 $ 77 $ 49 $ 55 22% 40%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
2000 PHARMACEUTICAL SALES BY BUSINESS (US$ IN MILLIONS)
THIRD QUARTER (CONTINUING BUSINESSES)
------------------------------------------------------------------------------------------------------------------------------------
Third Quarter Third Quarter % Change September September % Change
2000 1999 Net Sales YTD 2000 YTD 1999 Net Sales
----------------------------------------------------------------------------------------------------------
US TOTAL US TOTAL US TOTAL US TOTAL US TOTAL US TOTAL
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL RX Pharma $1,676 $2,834 $1,213 $2,304 38% 23% $4,433 $7,941 $3,444 $6,657 29% 19%
Consumer Health 77 151 87 165 (11%) (8%) 245 484 266 509 (8%) (5%)
Animal Health 64 116 58 107 10% 8% 171 324 146 293 17% 11%
Misc. Pharma 94 182 71 158 32% 15% 256 56 230 549 11% 2%
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER Pharma 235 449 216 430 9% 4% 672 1,368 642 1,351 5% 1%
====================================================================================================================================
TOTAL PHARMA $1,911 $3,283 $1,429 $2,734 34% 20% $5,105 $9,309 $4,086 $8,008 25% 16%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
